BIR Ruling No. 305-14

July 24, 2014 BIR RULING NO. 305-14 Tax Code, Sec. 91 (B) of the NIRC, as amended; BIR Ruling No. 020-11 Josephine Antolin-Cang 1945 Kamias St. Dasmarias Village, Makati City Gentlemen : This refers to your letter dated January 19, 2012 requesting an extension of time within which to pay the estate tax. It is represented that Peter Cang Hocho died on July 24, 2011; that your reason for an extension of time to pay estate tax is that he left a Holographic Will which is subject to probate proceedings before the Regional Trial Court of Makati; that the probable value of the properties that the decedent left is about fifty one million pesos (P51,000,000.00); and that he left a quite a number of debts and obligations prior to his death, which shall be proven during the probate proceedings. Hence, this request. In reply thereto, please be informed that Section 91 (B) of the Tax Code of 1997 provide, viz. : "SEC. 91. Payment of tax. xxx xxx xxx (B) Extension of Time. When the Commissioner finds that the payment on the due date of the estate tax or of any part thereof would impose undue hardship upon the estate or any of the heirs, he may extend the time for payment of such tax or any part thereof not to exceed five (5) years, in case the estate is settled through the courts, or two (2) years in case the estate is settled extrajudicially. In such case, the amount in respect of which the extension is granted shall be paid on or before the date of the expiration of the period of the extension, and the running of the Statute of Limitations for assessment as provided in Section 203 of this Code shall be suspended for the period of any such extension." "xxx xxx xxx "If an extension is granted, the Commissioner may require the executor, or administrator, or beneficiary, as the case may be, to furnish a bond in such amount, not exceeding double the amount of the tax and with such sureties as the Commissioner deems necessary, conditioned upon the payment of the said tax in accordance with the terms of the extension." cAHIaE Based on the foregoing justifiable reason, your request for an extension of the time within which to pay the estate tax is hereby granted up to the maximum period of five (5) years in case the estate is settled through the courts, reckoned from actual filing of the return or on January 24, 2012 whichever comes first, provided that the executor, or administrator, or beneficiary, shall furnish a bond in such amount, not exceeding double the amount of the tax and with such sureties as the Commissioner deems necessary, conditioned upon the payment of the said tax in accordance with the terms of the extension. It shall be understood, however, that the estate shall be liable for the corresponding interest that shall have accrued thereon up to the time of payment of the estate tax due on the transmission by the said estate of its properties in favor of the heirs pursuant to Section 249 of the Tax Code of 1997. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner Bureau of Internal Revenue